What is LBTC?

LBTC is a liquid staked Bitcoin token (LST) that allows Bitcoin holders to earn staking yields via Babylon while maintaining liquidity and cross-chain compatibility. Backed 1:1 by BTC, LBTC enables holders to participate in DeFi protocols—such as lending, trading, and liquidity provision—without compromising the security or value of their Bitcoin. Designed to seamlessly integrate Bitcoin into the broader decentralized economy, LBTC helps unlock Bitcoin’s utility as a productive financial asset.

How does LBTC work?

LBTC is minted when users stake their Bitcoin with Lombard, which integrates with Babylon’s staking infrastructure. Staked BTC earns native yield from Babylon, providing security to PoS networks, and is represented by LBTC tokens. These tokens maintain liquidity, allowing holders to deploy them in DeFi protocols across multiple blockchains. LBTC is secured by Lombard’s Security Consortium, which validates all staking, minting, and cross-chain transactions, ensuring decentralization and minimizing counterparty risk. Yields are accrued from Babylon staking rewards, DeFi integrations, and protocol incentives like Lombard Lux.

How to redeem LBTC

Redeeming LBTC involves unstaking it through Lombard’s WebApp, allowing users to exchange their LBTC for the equivalent amount of BTC at a 1:1 ratio. When initiating redemption, the process begins with a 9-day unstaking period, during which Babylon conducts necessary security checks to ensure the integrity of the staking system. After the unstaking period, the BTC is sent directly to the user’s specified SegWit-compatible Bitcoin address (e.g., P2WPKH, P2WSH, or P2TR). The redemption process ensures full security and transparency, as all transactions are validated by Lombard’s decentralized Security Consortium. Users should note that transaction fees and network congestion may affect the timing and cost of the redemption process.